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DECISION No.435-TTg OF JUNE 16, 1997 RATIFYING THE AFFORESTATION FEASIBILITY PROJECT IN HA TINH, QUANG BINH AND QUANG TRI PROVINCES (WITH NON-REFUNDABLE AID FROM THE GOVERNMENT OF THE FEDERAL REPUBLIC OF GERMANY)

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to the Regulation on Management of Investment and Construction issued together with Decree No.42-CP of July 16, 1996 of the Government;

At the proposals of the Minister of Agriculture and Rural Development in Official Dispatch No.990/NN-HTQT/CV of April 2, 1997 and the Minister of Planning and Investment in Official Dispatch No.3333-BKH/VPTD of June 7, 1997,

DECIDES:

Article 1.- To ratify the afforestation feasibility project in Ha Tinh, Quang Binh and Quang Tri provinces to be funded with non-refundable aid from the Government of the Federal Republic of Germany, including the following principal contents:

1. The name of the project: Afforestation in Ha Tinh, Quang Binh and Quang Tri provinces.

2. The aid-receiving and project-managing agency: The Ministry of Agriculture and Rural Development.

3. The project-executing agency: The People’s Committees of Ha Tinh, Quang Binh and Quang Tri provinces.

4. The project-execution duration: Four years and six months (from June 1997 to December 2001).

5. The area where the project is to be executed: 44 communes of 10 districts of the three provinces of Ha Tinh, Quang Binh and Quang Tri.

6. The objectives of the project: To contribute to the execution of the program for afforestation and land preservation in the area of the provinces of Ha Tinh, Quang Binh and Quang Tri, through helping farmers effectively use the land, to maintain the ecological equilibrium, and at the same time to create jobs and raise the living standards for the people in the project area, with the following specific targets:

- Afforestation (including tending, management and protection) of 21,000 hectares of forest.

- Supporting the communes engaged in the project from 10 districts of the provinces of Ha Tinh, Quang Binh and Quang Tri and drawing up plans for land use in every hamlet and village within the first three years of execution of the project.

7. The principal investment contents:

- Agricultural and forestry promotion service activities, the provision of supplies and technical knowledge for afforestation and helping farmers effectively use the land.

- Direct the supply of capital to farming households engaged in the project via the saving accounts managed by the Bank for Agriculture and Rural Development of Vietnam for spending on the afforestation and tending and protection of the planted forests.

- Effective management and coordination of all activities related to the project.

8. The total fund of the project: 17,556,000 DM (the currency of the Federal Republic of Germany).

Of which: - Non-refundable assistance from the Government of the Federal Republic of Germany: 15,000,000 DM.

- Reciprocal capital from the Vietnamese Government: 2,556,000 DM (equivalent to 18,659 million VND).

Article 2.- With regard to the organization of the implementation: To assign the Ministry of Agriculture and Rural Development to receive the aid and act as the project manager; to coordinate with the People’s Committees of Ha Tinh, Quang Binh and Quang Tri provinces in directing the basic survey and planning of the land use in the communes in the project area, and thereby determine the area of planted forests of various types; and to effectively manage the project and achieve the most effective and economical management suitable to the objectives and content of the project.

Article 3.- The Ministry of Agriculture and Rural Development shall assume the main responsibility and coordinate with the Ministry of Finance, the Ministry of Planning and Investment and the concerned ministries and branches in detailing the financial agreement of the non-refundable aid project of the Government of the Federal Republic of Germany so as to properly and effectively achieve the objectives set for the project with the principal purpose of supporting the afforestation, and at the same time proposing to the Prime Minister for decision the policy for repayment in form of farm products of a part of capital provided for households for planting production forests.

Article 4.- On the basis of the principal purposes of the approved feasibility project as mentioned in Article 1 of this Decision, to authorize the Minister of Agriculture and Rural Development to sign the financial agreement of this project with the representative of the Government of the Federal Republic of Germany.

Article 5.- To authorize the Ministry of Planning and Investment to assume the main responsibility for and coordinate with the Ministry of Finance, the Ministry of Agriculture and Rural Development and the People’s Committees of the provinces in the project areas in consideration and incorporation into the State annual plans of the reciprocal capital of 2,050,000 DM (equivalent to 14,968 million VND), calculated according to the actual investment expenses for the execution of the project.

Article 6.- The Minister of Agriculture and Rural Development, the Minister of Planning and Investment, the Minister of Finance, the Governor of the State Bank of Vietnam, the Presidents of the People’s Committees of Ha Tinh, Quang Binh and Quang Tri provinces and the Heads of the concerned agencies shall have to implement this Decision.

For the Prime Minister

Deputy Prime Minister

TRAN DUC LUONG